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Pinduoduo

Nasdaq:PDD
Snowflake Description

Flawless balance sheet with exceptional growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PDD
Nasdaq
$24B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China. The last earnings update was 37 days ago. More info.


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PDD Share Price and Events
7 Day Returns
-2.1%
NasdaqGS:PDD
1.4%
US Online Retail
1.4%
US Market
1 Year Returns
-
NasdaqGS:PDD
2.3%
US Online Retail
4.9%
US Market
PDD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pinduoduo (PDD) -2.1% 1.2% -12% - - -
US Online Retail 1.4% 6.2% 2.7% 2.3% 132.1% 219.8%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • No trading data on PDD.
  • No trading data on PDD.
Price Volatility
Industry
5yr Volatility vs Market

PDD Value

 Is Pinduoduo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Pinduoduo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pinduoduo.

NasdaqGS:PDD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PDD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Online Retail Unlevered Beta Simply Wall St/ S&P Global 1.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.67 (1 + (1- 25%) (0.15%))
1.45
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.45
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.45 * 5.96%)
11.37%

Discounted Cash Flow Calculation for NasdaqGS:PDD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pinduoduo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:PDD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 11.37%)
2019 5,290.67 Analyst x3 4,750.42
2020 12,580.67 Analyst x3 10,142.54
2021 17,592.00 Analyst x2 12,734.44
2022 13,755.00 Analyst x1 8,940.19
2023 21,177.00 Analyst x1 12,358.68
2024 23,351.10 Est @ 10.27% 12,235.92
2025 25,220.45 Est @ 8.01% 11,865.98
2026 26,840.31 Est @ 6.42% 11,338.61
2027 28,266.86 Est @ 5.31% 10,721.89
2028 29,550.02 Est @ 4.54% 10,064.06
Present value of next 10 years cash flows CN¥105,152.71
NasdaqGS:PDD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥29,550.02 × (1 + 2.73%) ÷ (11.37% – 2.73%)
CN¥351,244.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥351,244.26 ÷ (1 + 11.37%)10
CN¥119,625.72
NasdaqGS:PDD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥105,152.71 + CN¥119,625.72
CN¥224,778.43
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥224,778.43 / 1,154.11
CN¥194.76
NasdaqGS:PDD Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NasdaqGS:PDD)
0.145
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥194.76 x 0.145
$28.31
Value per share (USD) From above. $28.31
Current discount Discount to share price of $20.53
= -1 x ($20.53 - $28.31) / $28.31
27.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Pinduoduo is available for.
Intrinsic value
27%
Share price is $20.53 vs Future cash flow value of $28.31
Current Discount Checks
For Pinduoduo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Pinduoduo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Pinduoduo's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Pinduoduo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pinduoduo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PDD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥-12.97
NasdaqGS:PDD Share Price ** NasdaqGS (2019-06-25) in USD $20.53
NasdaqGS:PDD Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.88 CN¥141.24
United States of America Online Retail Industry PE Ratio Median Figure of 29 Publicly-Listed Online Retail Companies 34.05x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pinduoduo.

NasdaqGS:PDD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PDD Share Price ÷ EPS (both in CNY)

= 141.24 ÷ -12.97

-10.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pinduoduo is loss making, we can't compare its value to the US Online Retail industry average.
  • Pinduoduo is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Pinduoduo's expected growth come at a high price?
Raw Data
NasdaqGS:PDD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -10.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
80.3%per year
United States of America Online Retail Industry PEG Ratio Median Figure of 22 Publicly-Listed Online Retail Companies 2.14x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Pinduoduo, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Pinduoduo's assets?
Raw Data
NasdaqGS:PDD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥21.96
NasdaqGS:PDD Share Price * NasdaqGS (2019-06-25) in USD $20.53
NasdaqGS:PDD Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.88 CN¥141.24
United States of America Online Retail Industry PB Ratio Median Figure of 66 Publicly-Listed Online Retail Companies 2.92x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NasdaqGS:PDD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PDD Share Price ÷ Book Value per Share (both in CNY)

= 141.24 ÷ 21.96

6.43x

* Primary Listing of Pinduoduo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pinduoduo is overvalued based on assets compared to the US Online Retail industry average.
X
Value checks
We assess Pinduoduo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Online Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Online Retail industry average (and greater than 0)? (1 check)
  5. Pinduoduo has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PDD Future Performance

 How is Pinduoduo expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
80.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pinduoduo expected to grow at an attractive rate?
  • Pinduoduo's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Pinduoduo's earnings growth is expected to exceed the United States of America market average.
  • Pinduoduo's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PDD Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PDD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 80.3%
NasdaqGS:PDD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 36.8%
United States of America Online Retail Industry Earnings Growth Rate Market Cap Weighted Average 26.3%
United States of America Online Retail Industry Revenue Growth Rate Market Cap Weighted Average 16.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PDD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PDD Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 106,306 11,283 1
2021-12-31 63,833 24,454 8,426 13
2020-12-31 46,761 16,160 6,470 17
2019-12-31 28,010 7,679 -6,098 17
NasdaqGS:PDD Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 16,281 6,908 -11,894
2018-12-31 13,120 7,768 -10,298
2018-09-30 8,645 564 -7,860
2018-06-30 5,696 -368 -6,983
2018-03-31 3,092 8,613 -599
2017-12-31 1,744 9,686 -499
2016-12-31 505 880 -322

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pinduoduo's earnings are expected to grow significantly at over 20% yearly.
  • Pinduoduo's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PDD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Pinduoduo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PDD Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 9.83 9.83 9.83 1.00
2021-12-31 8.80 9.73 8.04 3.00
2020-12-31 4.02 6.85 1.87 4.00
2019-12-31 -4.94 -4.19 -5.76 10.00
NasdaqGS:PDD Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 -12.97
2018-12-31 -13.88
2018-09-30 -13.73
2018-06-30 -15.48
2018-03-31 -1.36
2017-12-31 -1.13
2016-12-31 -0.71

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Pinduoduo is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Pinduoduo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pinduoduo has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PDD Past Performance

  How has Pinduoduo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Pinduoduo's growth in the last year to its industry (Online Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Pinduoduo does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Pinduoduo's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Pinduoduo's 1-year growth to the US Online Retail industry average as it is not currently profitable.
Earnings and Revenue History
Pinduoduo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pinduoduo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PDD Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 16,280.59 -11,893.81 23,777.54 1,710.32
2018-12-31 13,119.99 -10,297.62 19,898.43 1,116.06
2018-09-30 8,645.47 -7,860.14 14,318.44 643.33
2018-06-30 5,696.09 -6,983.26 11,218.08 347.12
2018-03-31 3,091.66 -598.91 2,541.54 185.97
2017-12-31 1,744.08 -498.70 1,477.79 129.18
2016-12-31 504.86 -322.41 183.78 29.42

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Pinduoduo has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Pinduoduo has efficiently used its assets last year compared to the US Online Retail industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Pinduoduo improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Pinduoduo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Online Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pinduoduo has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PDD Health

 How is Pinduoduo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pinduoduo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pinduoduo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pinduoduo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Pinduoduo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Pinduoduo has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Pinduoduo Company Filings, last reported 2 months ago.

NasdaqGS:PDD Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 25,029.13 0.00 29,421.24
2018-12-31 18,822.59 0.00 21,791.01
2018-09-30 20,760.60 0.00 22,471.30
2018-06-30 9,390.36 0.00 10,330.87
2018-03-31 9,592.57 0.00 9,484.29
2017-12-31 1,204.96 0.00 3,108.15
2016-12-31 356.46 0.00 1,609.84
  • Pinduoduo has no debt.
  • Pinduoduo has not taken on any debt in the past 5 years.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Pinduoduo has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Pinduoduo has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -27.2% per year.
X
Financial health checks
We assess Pinduoduo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pinduoduo has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PDD Dividends

 What is Pinduoduo's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Pinduoduo dividends. Estimated to be 0% next year.
If you bought $2,000 of Pinduoduo shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Pinduoduo's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Pinduoduo's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PDD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Global Online Retail Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PDD Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Pinduoduo has not reported any payouts.
  • Unable to verify if Pinduoduo's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Pinduoduo's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Pinduoduo has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Pinduoduo's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Pinduoduo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pinduoduo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pinduoduo has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PDD Management

 What is the CEO of Pinduoduo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Huang Zheng
AGE 38
TENURE AS CEO 4.4 years
CEO Bio

Mr. Huang Zheng is a Founder of Pinduoduo Inc. and has been its Chairman of the Board of Directors and Chief Executive Officer since 2015. Mr. Zheng employed at Ouku.com in the position of Chief Executive Officer and Founder. Mr. Huang is a serial entrepreneur with significant experience and expertise in the technology and internet sectors in China. Prior to founding company, Mr. Huang founded Xinyoudi Studio in 2011 to develop and operate online games. Prior to that, Mr. Huang founded Ouku.com, a company that operated an online B2C platform for consumer electronics and home appliances, which was subsequently sold in 2010. Mr. Huang started his career at Google's (Nasdaq: GOOG) headquarters in 2004 as a software engineer and project manager. Mr. Huang subsequently relocated to China and was part of the team that established Google China. Mr. Huang was trained as a data scientist and has published numerous works on the subject of data mining, including in top peer reviewed journals, and presented his works in a number of international conferences, such as the ACM SIGMOD Conference and International Conference on Machine Learning. Mr. Huang received his bachelor's degree in computer science from Zhejiang University and his master's degree in computer science with a focus on data mining from University of Wisconsin-Madison.

CEO Compensation
  • Insufficient data for Huang to compare compensation growth.
  • Insufficient data for Huang to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Pinduoduo management team in years:

3.4
Average Tenure
38
Average Age
  • The tenure for the Pinduoduo management team is about average.
Management Team

Huang Zheng

TITLE
Founder
AGE
38
TENURE
4.4 yrs

Junyun Xiao

TITLE
Senior Vice President of Operation
AGE
38
TENURE
3.4 yrs

Lei Chen

TITLE
Chief Technology Officer
AGE
38
TENURE
3.4 yrs

Christian Arnell

TITLE
Investor Relations Officer

Zhenwei Zheng

TITLE
Senior Vice President of Product Development
AGE
34
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Pinduoduo board of directors in years:

1.6
Average Tenure
46.5
Average Age
  • The average tenure for the Pinduoduo board of directors is less than 3 years, this suggests a new board.
Board of Directors

Huang Zheng

TITLE
Founder
AGE
38
TENURE
4.4 yrs

Haifeng Lin

TITLE
Director
AGE
41
TENURE
2 yrs

Qi Lu

TITLE
Independent Director
AGE
56
TENURE
0.9 yrs

George Yeo

TITLE
Independent Director
AGE
64
TENURE
0.9 yrs

Neil Shen

TITLE
Independent Director
AGE
51
TENURE
1.2 yrs

Zhen Zhang

TITLE
Director
AGE
42
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Aug 18 Buy Tencent Holdings Limited Company 25. Jul 18 25. Jul 18 7,894,737 $19.00 $150,000,003
X
Management checks
We assess Pinduoduo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pinduoduo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PDD News

Simply Wall St News

Is Pinduoduo Inc. (NASDAQ:PDD) A Financially Strong Company?

Given zero long-term debt on its balance sheet, Pinduoduo has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. … Looking at PDD’s CN¥25b in current liabilities, the company has been able to meet these commitments with a current assets level of CN¥47b, leading to a 1.9x current account ratio. … The current ratio is calculated by dividing current assets by current liabilities.

Simply Wall St -

Estimating The Intrinsic Value Of Pinduoduo Inc. (NASDAQ:PDD)

(NASDAQ:PDD) by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CN¥, Millions) CN¥8.71k CN¥15.40k CN¥16.89k CN¥18.17k CN¥19.28k CN¥20.27k CN¥21.16k CN¥21.98k CN¥22.76k CN¥23.51k Growth Rate Estimate Source Est @ 12.64% Analyst x1 Est @ 9.67% Est @ 7.58% Est @ 6.13% Est @ 5.11% Est @ 4.4% Est @ 3.9% Est @ 3.55% Est @ 3.3% Present Value (CN¥, Millions) Discounted @ 11.36% CN¥7.82k CN¥12.42k CN¥12.23k CN¥11.82k CN¥11.26k CN¥10.63k CN¥9.97k CN¥9.30k CN¥8.65k CN¥8.02k Present Value of 10-year Cash Flow (PVCF)= CN¥102.11b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … NasdaqGS:PDD Intrinsic value, May 14th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Pinduoduo Inc.'s (NASDAQ:PDD) Shift From Loss To Profit

The US$29b market-cap company announced a latest loss of -CN¥10.3b on 31 December 2018 for its most recent financial year result. … I’ve put together a brief outline of industry analyst expectations for PDD, its year of breakeven and its implied growth rate … See our latest analysis for Pinduoduo

Simply Wall St -

Why We Think Pinduoduo Inc. (NASDAQ:PDD) Could Be Worth Looking At

Attractive stocks have exceptional fundamentals. … In the case of Pinduoduo Inc. … (NASDAQ:PDD), there's

Simply Wall St -

Is Pinduoduo Inc. (NASDAQ:PDD) A Financially Strong Company?

Common characteristics for these big stocks are their strong balance sheet and high market liquidity, which means there's plenty of stocks available to the public for trading. … In times of low liquidity in the market, these firms won’t be left high and dry. … Using the most recent data for PDD, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

An Intrinsic Calculation For Pinduoduo Inc (NASDAQ:PDD) Shows It's 31.67% Undervalued

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Why Fundamental Investors Might Love Pinduoduo Inc (NASDAQ:PDD)

Attractive stocks have exceptional fundamentals. … In the case of Pinduoduo Inc (NASDAQ:PDD), there's … financial health as well as

Simply Wall St -

PDD Company Info

Description

Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China. It operates Pinduoduo, a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverage, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc. in July 2018. Pinduoduo Inc. was founded in 2015 and is based in Shanghai, the People's Republic of China.

Details
Name: Pinduoduo Inc.
PDD
Exchange: NasdaqGS
Founded: 2015
$23,705,361,312
1,154,107,172
Website: http://www.pinduoduo.com
Address: Pinduoduo Inc.
No. 533 Loushanguan Road,
28th Floor,
Shanghai,
200051,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PDD SPONSORED ADS Nasdaq Global Select US USD 26. Jul 2018
Number of employees
Current staff
Staff numbers
3,683
Pinduoduo employees.
Industry
Internet and Direct Marketing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 01:09
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/20
Last earnings filing: 2019/05/20
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.